By George Ward
The FTX debacle has caused a significant dent in the digital assets market. While the FTX crash epidemic hits on, the crypto community and its leaders have called out watchdogs for letting Sam Bankman-Fried, the FTX founder, get away with the fallout.
Meanwhile, the XRP lawyer shared his thoughts over Sam Bankman-Fried (SBF) ‘s possible arrest and serving a jail term. So far, there’s been assertions that the FTX-BlockFi Deal is a fraud.
Hence, the XRP holders’ lawyer John Deaton has asserted that the FTX-BlockFi business deal was also fraudulent. SBF introduced a condition that funds should be held on the platform.
Thus, he could lend those funds to his other firms without prior notice. The act directly constitutes theft, according to Deaton.
The act was repeatedly done by the FTX CEO, which is observed to depict an intent. He loaned the funds to Alameda, his other investment. Based on several other reports, SBF also used the funds for personal acquisitions and political donations.
Furthermore, SBF used over $100 million of customers’ funds to purchase real estate in his parent’s names. While BlockFi eventually filed for bankruptcy, these findings also led Deaton to confidently claim that the BlockFi deal was enough proof to send SBF to jail under US laws.
Will SBF Escape Jail Terms?
Meanwhile, Deaton further said the only legitimate debate regarding Sam Bankman-Fried’s jail is whether it should occur now or after a few weeks. However, the court would only make its judgment after receiving more evidence.
Nevertheless, some experts have declared that there is now sufficient evidence that could send SBF to jail immediately. The XRP lawyer also stated that SBF’s action would expose all his accomplices with whom he might face the wrath of the law under the US criminal laws.
However, he remarked that if the FTX CEO faced persecution, he could get a lighter sentence. According to reports, the Turkish government has seized all assets belonging to FTX in its country.
However, charges against SBF and other crime culprits about money laundering, fraudulent activities, and market manipulation continues.